The current Coat of Arms protection law from 2017 only allows the authorities to use the coats of arms. While there are exceptions to this rule, the SIHF had submitted the formal application for a license too late as the deadline was in 2018 and they applied in 2021.
While the Federal Administrative Court decided in favor of the IPI, it seems like the Swiss will be able to continue to wear the coat of arms on their jersey. According to "Blick", the IPI has granted the SIHF to continue to use the coat of arms until the end of 2026. In 2027, the SIHF will create new jerseys - unless the law gets changed again, as there are currently political motions in progress which would grant national teams exceptions.